US coffee roasters will have combined capacity to package nearly 100,000 tons of coffee annually when the deal is finalised in the first quarter of 2020
Westrock has gained access to S&D’s extensive packaged coffee and equipment expertise across the US retail, hospitality, café, and restaurant segments
Two of the largest private label coffee roasters and distributors in the US are set to combine forces after Westrock Coffee Company announced a definitive agreement to acquire S&D Coffee & Tea from Cott Corporation for a reported $405m.
In a press statement, Westrock said the two companies will remain trading as separate brands for the ‘foreseeable future’, with S&D President and CEO Ron Hinson maintaining an advisory role as chairman emeritus to the combined organisation.
“This strategic combination will create the nation’s premier coffee, tea, and extract supplier that is capable of serving the most complex and demanding customers across the country and around the world,” said Westrock Coffee Co-founder and CEO, Scott Ford.
Arkansas-based Westrock is one of the largest commercial coffee roasters in the US
, with expansive operations including an 85,000-sq m distribution centre, 27,000-sq m roasting and packaging plant, and 9,000-sq m bag plant.
The acquisition grants Westrock access to S&D’s extensive packaged coffee and equipment expertise across the US retail, hospitality, café, and restaurant segments. Together, the firms will have the capacity to package nearly 100,000 tons of coffee annually, employing around 1,700 people, when the deal is finalised in the first quarter of 2020.
It has been less than four years since Canada-based Cott Corporation purchased S&D for a reported $355m in 2016. In early 2020, Cott announced its intention to offload its coffee and tea division to focus on becoming a “pure-play water solutions provider,” acquiring Primo Water Corporation for $775m on 26 January 2020.